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How are savings bonds different from a corporate bond? Does issuing a bond at a discount increase or decrease interest expense over the life of

  1. How are savings bonds different from a corporate bond?
  2. Does issuing a bond at a discount increase or decrease interest expense over the life of the bond? Explain.
  3. Why is the effective-interest method of amortization required under the International Financial Reporting Standards?
  4. Does interest expense increase or decrease when a bond premium is amortized? Explain.

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